The financial position of state-run oil marketing companies (OMCs) may be adversely affected because of the depreciation of rupee against the dollar.
Rupee’s depreciation would put strain on the working capital of oil companies. Some reports indicate that the borrowing of oil companies, which was in the range of Rs 1.5 lakh crore, may rise further if they don’t raise domestic fuel prices to compensate for the rise in import cost.
Every one rupee depreciation against the dollar raises the collective loss of the industry to Rs 8,000 crore, reports indicate.
Some OMCs said if the rupee continues to depreciate over the next 7-10 days, they will have to revise petrol prices again. Recently, these OMCs raised the price of petrol and diesel.
In the case of diesel, the gap between the administered and market prices has widened despite the monthly increase of 50 paise per litre.
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